To RFID or Not to RFID: Are the Egyptian FMCGs Ready for it?

Abstract

This research demonstrates the characteristics of radio frequency identification (RFID) technology and its potential applications in managing FMCG’s business in the Egyptian market. The Egyptian market is in the process of learning about such practices and technology implementations in this particular field, thus, this research aims at describing an analytical model to assess the benefits, costs and challenges of applying RFID technology over the supply chain processes of the FMCG companies businesses. Therefore, the research draws material largely from trade and practitioner sources and illustrates general themes with specific retail examples. The research area is an interdisciplinary study which examines RFID from different disciplinary perspectives with the purpose of giving insights into the area. Two complementary methods have been adopted: a careful review and summary of relevant literature, and unstructured interviews with Egyptian FMCG’s managers. The research suggests that RFID has the potential to offer Egyptian FMCGs a wide range of benefits throughout the supply chain including tighter management and control of the supply chain, reductions in shrinkage, reduced labour costs and improved customer service while also facilitating compliance with traceability protocols and food safety regulations. Simultaneously, Egyptian FMCGs would need to address a number of operational and strategic challenges and consumer privacy concerns before they can fully realize these benefits.